Paramount-Skydance unlikely to reach a deal during 30-day exclusivity window

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Paramount Global’s talks with suitor Skydance Media are expected to continue on past an upcoming deadline, according to a report. 

When the two companies began talks earlier in April 2024, they entered into a 30-day exclusivity period that will expire on May 3, 2024.

It now appears unlikely that the two will reach a final deal by then, CNBC’s David Faber reported April 17, 2024.

The deal is not dead, however, as the two sides can continue discussions, just without the guarantee of exclusivity. 

Faber added that many analysts did not expect the companies to come to a final agreement by the deadline — and that there could be more “twists and turns” in the process. 

Faber also reported that Skydance believes it can realize $3 billion in savings through cost-cutting should the merger go through.

Paramount’s sale is facing another major issue as well.

Shari Redstone, who holds controlling interest in Paramount, has opted to sell only her stake in National Amusements, the private company that owns around 80% of the conglomerate’s shares. She is reportedly being paid $2 billion for those. 

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However, this move has not been greeted well by investors, who likely won’t be paid a premium for their voting shares should a deal be finalized. 

A prominent investor, Mario Gabelli, even went on the record saying he’d rather the sale not go through if it uses Redstone’s proposed structure. 

Deals as big as this one are typically very complex and involve extensive negotiations, discussions and vetting by various teams. 

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